,,ii #aahth ,,congress #ast ,session ,s4 #abji ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #ai1 #bjbc,mr4 ,booker introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to regulate tax return preparers and refund anticipation payment arrangements4 #a4 ,short title ,this ,act may be cited as the ,tax ,refund ,protection ,act4 #b4 ,regulation of tax return preparers 7a7 ,in general ,section #ccj of title #ca1 ,united ,states ,code1 is amended to read as follows3 #ccj4 ,practice before the department and tax return preparers 7a7 ,subject to section #ejj of title #e1 the ,secretary of the ,treasury may-- 7#a7 regulate the practice of representatives of persons before the ,department of the ,treasury through licensure2 7#b7 certify the practice of tax return preparers2 and 7#c7 before admitting a representative or a tax return preparer to practice1 require that the representative or tax return preparer demonstrate-- 7,a7 good character2 7,b7 good reputation2 7,c7 necessary qualifications to enable the representative or tax return preparer to provide to persons valuable service2 and 7,d7 competency to advise and assist persons in presenting their cases or in preparing tax returns1 claims for refund1 or other submissions related to the ,internal ,revenue ,code of #aihf or other laws or regulations administered by the ,internal ,revenue ,service4 7b7 ,any enrolled agents properly licensed to practice as required under rules promulgated under subsection 7a7 shall be allowed to use the credentials or designation of enrolled agent1 ,,ea1 or ,e4,a44 7c7 7#a7 ,after notice and opportunity for a proceeding1 the ,secretary may1 with respect to a representative or tax return preparer who is described in paragraph 7#b7-- 7,a7 suspend or disbar from practice before the ,department a representative2 7,b7 decertify a tax return preparer2 or 7,c7 censure a representative or tax return preparer4 7#b7 ,a representative or tax return preparer is described in this paragraph if the representative or tax return preparer-- 7,a7 is incompetent2 7,b7 is disreputable2 7,c7 violates regulations prescribed under this section2 or 7,d7 with intent to defraud1 willfully and knowingly misleads or threatens the person being represented or a prospective person to be represented4 7#c7 ,the ,secretary may impose a monetary penalty on any representative or tax return preparer described in paragraph 7#b74 ,if the representative or tax return preparer was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to such penalty1 the ,secretary may impose a monetary penalty on such employer1 firm1 or entity if it knew1 or reasonably should have known1 of such conduct4 ,such penalty shall not exceed the gross income derived 7or to be derived7 from the conduct giving rise to the penalty and may be in addition to1 or in lieu of1 any suspension of the representative1 the decertification of the tax return preparer1 or censure of the representative or the tax return preparer4 7d7 ,after notice and opportunity for a hearing to any appraiser1 the ,secretary may-- 7#a7 provide that appraisals by such appraiser shall not have any probative effect in any administrative proceeding before the ,department of the ,treasury or the ,internal ,revenue ,service1 and 7#b7 bar such appraiser from presenting evidence or testimony in any such proceeding4 7e7 ,nothing in this section or in any other provision of law shall be construed to limit the authority of the ,secretary of the ,treasury to impose standards applicable to the rendering of written advice with respect to any entity1 transaction plan or arrangement1 or other plan or arrangement1 which is of a type which the ,secretary determines as having a potential for tax avoidance or evasion4 7f7 7#a7 ,the ,secretary of the ,treasury may impose fees on tax return preparers necessary to implement such programs as required by subsection 7a74 7#b7 ,in addition to paragraph 7#a71 the ,commissioner of ,internal ,revenue may impose an annual fee necessary for any competency testing and training required for licensure and certification under this section4 7#c7 ,nothing in this section may be construed to limit the authority of the ,commissioner of ,internal ,revenue to issue orders and establish fees related to the other purposes1 including the issuing of ,preparer ,tax ,identification ,numbers4 7g7 ,for purposes of this section-- 7#a7 the term tax return preparer has the meaning given such term by section #ggja7;a77#cf7 of the ,internal ,revenue ,code of #aihf2 7#b7 the term tax return has the meaning given to the term return under section #ffif7;e77#a7 of such ,code2 and 7#c7 the term claim for refund has the meaning given such term under section #ffif7;e77#b7 of such ,code4 4 7b7 ,clerical amendment ,the chapter analysis for chapter #c of title #ca1 ,united ,states ,code1 is amended by striking the item relating to section #ccj and inserting the following3 #ccj4 ,practice before the department and tax return preparers4 4 #c4 ,clarifying authority to impose civil penalties for improper disclosures ,subsection 7c7 of section #fgac of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7c7 ,exceptions 7#a7 ,exceptions ,the rules of section #gbaf7;b7 shall apply for purposes of this section4 7#b7 ,cross reference ,see section #gbaf for criminal penalty for disclosure or use of information by preparers of returns4 4 #d4 ,regulation of refund anticipation payment instruments 7a7 ,disclosure requirements for tax return preparers ,subchapter ,a of chapter #hj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ghac4 ,disclosure requirements for tax return preparers 7a7 ,in general ,the ,secretary may require tax return preparers to provide disclosures to a person receiving tax return preparation services or a prospective person to receive such services4 ,such disclosures shall-- 7#a7 identify the amount of fees the tax return preparer charges for preparing a tax return1 filing a tax return1 submitting a claim for refund1 executing a refund anticipation payment arrangement1 or submitting other submissions related to this title or other laws or regulations administered by the ,internal ,revenue ,service1 7#b7 identify where on the website published by the ,internal ,revenue ,service the average amount of time in which an individual who files a ,federal income tax return can expect to receive a refund1 7#c7 in the case of a refund anticipation payment arrangement involving a depository account not controlled by the person receiving tax return preparation services or a prospective person to receive such services1 describe-- 7,a7 the difference in days between the average amount of time by which a person receiving tax return preparation services or a prospective person to receive such services receives the tax refund 7in whole or in part7 from a refund anticipation payment arrangement1 and 7,b7 the average amount of time by which a person receiving tax return preparation services or a prospective person to receive such services who files a ,federal income tax return electronically receives the tax refund deposited directly to that person's account by the taxing authority1 7#d7 state that a refund anticipation payment arrangement is not necessary to receive a tax refund1 7#e7 state that1 if a person receiving tax return preparation services or a prospective person to receive such services does not receive a tax refund or the amount of the tax refund is less than the amount anticipated under the refund anticipation payment arrangement1 the person receiving tax return preparation services or a prospective person to receive such services may be responsible for paying any fees and interest associated with a refund anticipation payment arrangement1 and 7#f7 include any such other disclosures not specified in the preceding paragraphs to carry out this section that the ,secretary deems appropriate4 7b7 ,refund anticipation payment arrangement defined ,for purposes of this section1 the term #8refund anticipation payment arrangement' means an arrangement under which1 in exchange for ,federal income tax preparation services1 a consumer agrees to pay a fee or interest upon receipt of the consumer's tax refund to a tax return preparer1 lender1 or other affiliated lender by-- 7#a7 requesting the ,federal ,government to deposit such tax refund1 in whole or in part1 directly into a depository account designated by either the consumer or the tax return preparer1 lender1 or other affiliated lender1 or 7#b7 directly paying the fee or interest to the tax return preparer1 lender1 or other affiliated lender4 4 7b7 ,failure ,to disclose ,part ,i of subchapter ,b of chapter #fh of such ,code is amended by adding at the end the following3 #fgbj;,d4 ,failure to meet disclosure requirements for tax return preparers 7a7 ,general rule ,if a tax return preparer fails to meet the requirements of section #ghac1 the ,secretary may impose a penalty of up to #a1jjj per each such failure4 7b7 ,penalty in addition to other penalties ,the penalty imposed by this section shall be in addition to any other penalty imposed by law4 4 7c7 ,clerical amendments 7#a7 ,the table of sections for subchapter ,b of chapter #fh of such ,code is amended by inserting after the item related to section #fgbj;,c the following new item3 ,sec4 #fgbj;,d4 ,failure to meet disclosure requirements for tax return preparers4 4 7#b7 ,the table of sections for subchapter ,a of chapter #hj of such ,code is amended by inserting after the item related to section #ghab the following new item3 ,sec4 #ghac4 ,disclosure requirements for tax return preparers4 4 7d7 ,effective date ,the amendments made by this section shall apply with respect to returns filed after ,december #ca1 #bjbc4